Reuters exclusively reports some on Wall Street try options trade to bet against AMC without getting burned

by DailyBriefers
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Entertainment & Lifestyle

Some Wall Street traders are betting against another massive rally in AMC Entertainment Holdings Inc and other “meme” stocks this week through a type of wager in the options market that would limit their losses should retail investors behind the run-up prove them wrong. A Reuters analysis of options data and interviews with market participants show that some institutional investors have ramped up complex options trades that let them bet the shares will fall. The so-called “bear put spread,” a common bearish options strategy, also limits profits. Its increased use now, which has not been previously reported, shows how Wall Street is looking for ways to profit off the unprecedented rise of retail trading but treading carefully after some high-profile funds got buffeted earlier this year.

Article Tags

Topics of Interest: Entertainment & Lifestyle

Type: Reuters Best

Sectors: Equities

Regions: North America

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Important Regional Story

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